The Good, The Bad, & The Ugly [Charts]

The Good [Charts], The Bad [Charts], and the Ugly [Charts]

The good news is so far we’ve seen strong support for BTC around $30k, but the latest price drop, rebound, and subsequent roll over puts bitcoin in a very precarious position; a major head and shoulders pattern has developed and may spell more short-term pain if BTC dives below $30k. The traditional rule of thumb would imply a target price as low as $10k if BTC were to make a clear break below the neckline, but technical analysis is only one piece of the bigger puzzle, especially when it comes to an asset with such a diehard support base and a growing acceptance among traditional investors. Having said that, an extended move below $30k could spell more short-term pain for hodlers; this price level also coincides with BTC’s 50-week moving average.

Bitcoin’s price has essentially been cut in half in less than two months, largely driven by the major unwind in leveraged positioning and profit taking following one of BTC’s best runs